Bergdorf Goodman Employees Report Suspicious Pay Deductions
Employees at Bergdorf Goodman are voicing concerns that their parent company, Saks Global, is inexplicably removing hundreds of dollars from their paychecks. Around 20 workers at the upscale New York store have reported deductions of up to 75% since the beginning of January, according to conversations with staff and a review of pay stubs and internal emails.
Saks Global entered Chapter 11 bankruptcy on January 13, just days after these pay issues emerged.
An email from January 28 reassured employees that the matter was under investigation and that management was “working to resolve it.” However, a representative from Saks Global stated this week that there were “no system errors related to payroll tax withholding or benefit deductions” since January 1.
The representative explained that it’s common for pay to fluctuate at the year’s start due to various factors like Social Security resets and benefit deductions. But affected employees, many of whom requested anonymity for fear of backlash, believe the numbers don’t make sense.
“The government can’t just take away 75% of our income. I mean, how are people supposed to manage bills or buy groceries?” one worker shared, noting that some are earning around $400 a week.
Another employee expressed frustration, saying, “It’s just so irresponsible. Please, don’t do this.”
Pay stubs reviewed indicated that between 40% and 64% of annual income was being withheld without explanation. Employees noted that while commissions can vary, one longtime worker mentioned making significantly less than expected based on past trends for January where traditional deductions hovered around 30%.
“Some of my colleagues can’t pay rent, others can’t even afford lunch,” said another employee, who claimed that over 60% of his income disappeared from his paycheck.
Adding to their woes, employees noted a decline in sales due to a lack of new merchandise at the Midtown store, which hadn’t received shipments since last year.
“My commission has dropped by more than 50%,” lamented one worker.
Saks has struggled financially, especially after acquiring Neiman Marcus in 2024, and last February, the former CEO admitted to having 18 months of unpaid invoices. However, this doesn’t clarify the unusual deductions or the pay disparities among workers who sold equivalent amounts.
For instance, two employees reported selling the same volume one week in January, but one made over $1,500 while the other’s take-home fell below $1,000.
Several reported oddities as well, like unauthorized changes to their tax documents affecting their New York City residency status in a new payroll system introduced this year.
Saks has denied claims of unauthorized access to employee data or any system errors. Still, the affected Bergdorf Goodman staff are left seeking answers.
“It shows a lack of transparency and respect for both employees and customers,” one noted. They added, “Retail workers are often the least powerful, yet they play such a crucial role in keeping everything running. This is frankly unacceptable.”
